Cathie Wood’s ARK Invest has made a bold move by purchasing nearly $18 million worth of Coinbase (COIN) shares, just two days after the investment firm had sold some of its holdings in the cryptocurrency exchange. The purchase comes at a time when Coinbase is facing regulatory scrutiny from the US Securities and Exchange Commission (SEC) over its lending product.
Despite the regulatory pressure, Wood and her team at ARK Invest have shown confidence in Coinbase’s long-term growth prospects by doubling down on their investment. The move is likely to have a positive impact on COIN’s stock price, which has been volatile since its direct listing earlier this year.
Regulatory Pressure on Coinbase
Coinbase’s stock price has been hit hard by the SEC’s investigation, with shares dropping more than 10% on Wednesday. The regulator has raised concerns over the exchange’s lending product, which it says may be a security. The investigation has cast a shadow over Coinbase’s future, as the exchange faces the possibility of legal action and increased regulatory scrutiny.
ARK Invest’s Bold Move
Despite the regulatory pressure, ARK Invest has shown its confidence in Coinbase’s future by buying nearly $18 million worth of shares. The investment firm is known for its focus on disruptive technology companies and its bullish outlook on the future of cryptocurrencies and blockchain technology.
